The interest rate and price level are jointly determined by simultaneous equilibrium of:
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CUET-PG 2026 Question 13: IS-LM model
Answer and worked solution
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IS-LM model has come up 137 times in 7 exams since 2004.
What this question tests
This question is on Equilibrium and shifts in IS-LM, part of IS-LM model in Macroeconomics.
Solving for income and the interest rate and tracing what shifts each curve.
TestStop has 18 past-paper questions on this subtopic; the nearest in year are below.
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Question from the CUET-PG 2026 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.